Financial Data and Key Metrics Changes - For the third quarter, sales were $790.1 million, up 6.6% year-over-year, with organic sales growth of 0.4% excluding Stuart Weitzman [20] - Consolidated gross margin was 42.7%, down 140 basis points compared to the previous year, driven by lower margins in both segments [21] - Operating earnings were $26.3 million, with an operating margin of 3.3% [22] Business Line Data and Key Metrics Changes - Brand portfolio sales increased 4.6% on an organic basis and 18.8% including Stuart Weitzman, with lead brands growing about 10% in North America [21] - Famous Footwear sales decreased by 2.2%, with comparable sales down 1.2% [20][21] - Sam Edelman and Allen Edmonds reported strong sales growth, particularly in boots and casual styles [9][10] Market Data and Key Metrics Changes - The international business showed robust growth, particularly in e-commerce and marketplace performance [11] - The brand portfolio gained significant market share in women's fashion footwear, with boots being a standout category [8] Company Strategy and Development Direction - The acquisition of Stuart Weitzman is seen as transformational, with plans to achieve break-even in 2026 and improve profitability thereafter [5][6] - The company is focusing on operational efficiency and cost savings through the establishment of new centers of excellence [7] - There is a strategic emphasis on premium contemporary brands and direct-to-consumer channels [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving better results in 2026, driven by gross margin improvements and SG&A reductions [29][31] - The tariff environment is stabilizing, and mitigation efforts are beginning to take effect [15][24] - Management noted that while challenges remain, particularly with inventory, they are optimistic about the future performance of the brand portfolio [14][15] Other Important Information - The company is working on integrating Stuart Weitzman and expects to realize synergies and cost savings post-integration [5][7] - Inventory levels are being aligned with sales trends, with a focus on clearing aged inventory [14][24] Q&A Session Summary Question: What is the opportunity for Stuart Weitzman going forward? - Management plans to achieve better performance through gross margin improvement and SG&A reductions, with a focus on wholesale and direct-to-consumer opportunities [29][31] Question: How is the fashion side of Famous Footwear performing? - Management noted success with premium brands and plans to build on this strength, particularly in the tall shaft boots category [32][35] Question: What are the expectations for gross margins going forward? - Management expects improvement in gross margins for both Famous Footwear and the brand portfolio in Q4, with a focus on reducing shrink and improving channel mix [37]

Financial Data and Key Metrics Changes - For the third quarter, sales were $790.1 million, up 6.6%, with organic sales increasing 0.4% excluding Stuart Weitzman [20] - Consolidated gross margin was 42.7%, down 140 basis points year-over-year, driven by lower margins in both segments [21] - Operating earnings were $26.3 million, with an operating margin of 3.3% [22] Business Line Data and Key Metrics Changes - Brand portfolio sales increased 4.6% on an organic basis and 18.8% including Stuart Weitzman [20] - Famous Footwear sales were down 2.2%, with comparable sales declining 1.2% [21] - Sam Edelman and Allen Edmonds delivered strong quarters with double-digit sales growth [9][10] Market Data and Key Metrics Changes - The international business showed robust growth, particularly in e-commerce and marketplace performance [11] - The brand portfolio gained significant market share in women's fashion footwear during the period [8] - Premium brands showed strength, while value-priced brands remained under pressure [21] Company Strategy and Development Direction - The acquisition of Stuart Weitzman is seen as transformational, with plans to achieve break-even in 2026 and profitability thereafter [5][6] - The company is focusing on integrating Stuart Weitzman into its ecosystem and capturing synergies [7] - There is a strategic emphasis on premium contemporary, direct-to-consumer, and international business [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving better results in 2026, driven by gross margin improvements and SG&A reductions [29][46] - The tariff environment is stabilizing, and mitigation efforts are beginning to take hold [15] - Management is optimistic about the performance of lead brands and the potential for organic growth [56] Other Important Information - Inventory at quarter end was $678 million, up $92 million year-over-year, with a portion attributed to Stuart Weitzman [23] - The company is working on reducing aged inventory and expects to clear most of it by the end of the year [44] - The company plans to enhance its consumer experience through the Flair format, which has shown positive results [16] Q&A Session Summary Question: What is the opportunity for Stuart Weitzman going forward? - Management plans to achieve better results in 2026 through gross margin improvement and SG&A reductions, with a focus on wholesale and direct-to-consumer opportunities [29][31] Question: What is happening with the Famous Footwear business? - Management noted success with premium brands and plans to build on this strength, while also addressing underperformance in women's fashion [32][34] Question: What are the expectations for gross margins and SG&A going forward? - Management expects improvement in gross margins in Q4 and anticipates a more favorable channel mix to enhance profitability [37][38] Question: How much inventory needs to be worked through for Stuart Weitzman? - Approximately a quarter to a third of the inventory is considered aged, and management is taking steps to clear it without damaging the brand [41][44] Question: What is the long-term earnings power of the company post-transition? - Management is focused on brand portfolio growth, particularly lead brands, and expects to see organic growth in 2026 [46][56]

Financial Data and Key Metrics Changes - For the third quarter, total sales were $790.1 million, up 6.6% year-over-year, with organic sales growth of 0.4% excluding Stuart Weitzman [19] - Consolidated gross margin was 42.7%, down 140 basis points compared to the previous year, driven by lower margins in both segments [20] - Operating earnings were $26.3 million, with an operating margin of 3.3% [22] Business Line Data and Key Metrics Changes - Brand portfolio sales increased 4.6% on an organic basis and 18.8% including Stuart Weitzman, with lead brands growing about 10% in North America [20] - Famous Footwear sales decreased by 2.2%, with comparable sales down 1.2% [15][20] - Sam Edelman and Allen Edmonds both delivered strong quarters with double-digit sales growth [9][10] Market Data and Key Metrics Changes - The international business showed marked strength, with significant market share gains in women's fashion footwear [8] - The premium brands performed well, while value-priced brands faced pressure [20] - The direct-to-consumer channels delivered growth and momentum, particularly in e-commerce [8] Company Strategy and Development Direction - The acquisition of Stuart Weitzman is seen as transformational, aligning with the company's focus on premium contemporary and direct-to-consumer business [5] - The company is working on integrating Stuart Weitzman to achieve break-even in 2026 and profitability thereafter [5][14] - Efforts are being made to establish new centers of excellence to drive structural cost savings and improve operational efficiency [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving better results in 2026, focusing on gross margin improvement and SG&A reductions [29][41] - The tariff environment is stabilizing, and mitigation efforts are beginning to take hold [15] - Management is optimistic about the performance of lead brands and the potential for organic growth in 2026 [42] Other Important Information - Inventory at the end of the quarter was $678 million, up $92 million year-over-year, with a portion attributed to Stuart Weitzman [23] - The company is addressing global excess inventory issues, with significant progress expected by entering 2026 [13] Q&A Session Summary Question: What is the opportunity for Stuart Weitzman going forward into 2026? - Management plans to achieve better results through gross margin improvement and SG&A reductions, with a focus on working closely with the Stuart Weitzman team [28] Question: How is the fashion side of the business performing, particularly in Famous Footwear? - Management noted success with premium brands and plans to build on this strength moving into 2026 [31] Question: What is the strategy for managing Stuart Weitzman's inventory? - The company is working on a multi-faceted approach to address aged inventory, with significant progress expected in the fourth quarter [35] Question: What are the expectations for gross margin improvement in 2026? - Management anticipates improvement in gross margin due to tariff mitigation efforts and better channel mix [41]

Third Quarter 2025 Performance - Sales reached $790 million, a 6.6% increase compared to Q3 2024[11, 13] - Adjusted Earnings Per Share (EPS) stood at $0.38[11, 13] - Gross margin was 42.7%, a decrease of 140 bps compared to Q3 2024[13] - Inventory increased by 15.8%[13] Performance Excluding Stuart Weitzman - Sales were $744 million, a 0.4% increase compared to Q3 2024[14, 15] - Adjusted EPS was $0.67[14, 15] - Gross margin was 42.5%, a decrease of 160 bps compared to Q3 2024[14, 15] - Inventory increased by 2.6%[14, 15] Segment Performance - Famous Footwear sales were $419 million, a 2.2% decrease compared to Q3 2024, with comparable sales down 1.2%[16, 17, 18] - Brand Portfolio sales were $384 million, an 18.8% increase compared to Q3 2024 including Stuart Weitzman, and up 4.6% excluding Stuart Weitzman[22] Outlook - Q4 Famous Footwear comparable sales are expected to be flat, with total sales down low single digits[29] - Q4 Brand Portfolio sales are expected to be flat-to-up 1% on an organic basis, with Stuart Weitzman sales adding $55 - $60 million[29] - Full-year adjusted diluted EPS is projected to be $0.55 to $0.60 including Stuart Weitzman, and $1.15 to $1.25 excluding Stuart Weitzman[29]

Core Viewpoint - Caleres Inc. reported quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.75 per share, and showing a decline from $1.23 per share a year ago, indicating a significant earnings surprise of -10.67% [1][2] Financial Performance - The company posted revenues of $790.05 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.55%, and showing an increase from $740.94 million year-over-year [2] - Over the last four quarters, Caleres has exceeded consensus revenue estimates two times [2] Stock Performance - Caleres shares have declined approximately 41.8% since the beginning of the year, contrasting with the S&P 500's gain of 16.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $708.55 million, and for the current fiscal year, it is $1.65 on revenues of $2.75 billion [7] - The trend of estimate revisions for Caleres was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Shoes and Retail Apparel industry, to which Caleres belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Caleres' stock performance [5]

Financial Performance - Consolidated sales for Q3 2025 were $790.1 million, an increase of 6.6% compared to Q3 2024, with Brand Portfolio sales rising 18.8% and Famous Footwear sales declining 2.2%[4] - GAAP earnings per diluted share were $0.07, down from $1.19 in Q3 2024; adjusted earnings per diluted share were $0.38, compared to $1.23 last year[6] - Gross profit for Q3 2025 was $329.9 million, with a gross margin of 41.8%, down 230 basis points from the previous year[5] - Selling and administrative expenses were $311.3 million, representing 39.4% of net sales, an increase of 310 basis points year-over-year[11] - Adjusted operating earnings for the thirteen weeks ended November 1, 2025, were $26.3 million, compared to $58.3 million in the same period of 2024, reflecting a significant decrease[21] - The operating margin for the thirteen weeks ended November 1, 2025, was 1.5%, down from 7.7% in the same period of 2024[21] - The adjusted operating margin for the thirty-nine weeks ended November 1, 2025, was 2.6%, down from 6.9% in 2024[25] - The company reported a net loss attributable to Caleres, Inc. of $1,602 for the thirty-nine weeks ended November 1, 2025, compared to net earnings of $102,190 in 2024[28] Acquisition and Integration - The acquisition of Stuart Weitzman was completed for a preliminary purchase price of $108.9 million, contributing $45.8 million to Brand Portfolio sales[4] - The impact of the Stuart Weitzman acquisition and integration costs on adjusted earnings was $14,379 thousand for the thirty-nine weeks ended November 1, 2025[19] - Total charges related to the Stuart Weitzman acquisition and integration costs amounted to $7,669,000 for the thirteen weeks ended November 1, 2025[22] - The acquisition and integration costs related to Stuart Weitzman amounted to $7,669 for the thirty-nine weeks ended November 1, 2025[26] Cash Flow and Investments - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $40,454 thousand, a decrease of 46.5% compared to $75,855 thousand for the same period in 2024[18] - Total net cash used for investing activities increased significantly to $155,667 thousand, compared to $40,328 thousand in the prior year, primarily due to the acquisition of Stuart Weitzman for $108,858 thousand[18] - The company had borrowings under the revolving credit agreement of $748,500 thousand for the thirty-nine weeks ended November 1, 2025, an increase from $537,368 thousand in the previous year[18] - Cash and cash equivalents at the end of the period were $33,963 thousand, slightly up from $33,685 thousand at the end of the previous year[18] Sales and Inventory - Direct-to-consumer sales accounted for approximately 71% of total net sales, indicating a strong eCommerce performance across both segments[5] - Inventory at the end of the quarter was $678.2 million, up $92 million year-over-year, with a 2.6% increase excluding Stuart Weitzman inventory[11] - Net sales for the thirteen weeks ended November 1, 2025, were $790.1 million, an increase of 6.6% compared to $740.9 million for the same period in 2024[21] - Net sales excluding Stuart Weitzman were $744.2 million, compared to $740.9 million in the prior year, indicating a slight growth[21] - Comparable sales decreased by 1.2% on a 13-week basis compared to the prior year[21] - Comparable sales for the thirty-nine weeks on a year-over-year basis decreased by 3.0%[25] Earnings Guidance - The company expects continued tariff pressure on gross margin and earnings dilution from Stuart Weitzman, projecting a GAAP loss per diluted share of $0.13 to $0.18 for the full year[7] - Adjusted earnings per diluted share for FY25 are anticipated to be in the range of $0.55 to $0.60, including $0.60 to $0.65 dilution from Stuart Weitzman[8] - The guidance for fiscal 2025 indicates a GAAP diluted earnings per share range of $(0.18) to $(0.13) and an adjusted diluted earnings per share range of $0.55 to $0.60[33] - The company reported a diluted adjusted earnings per share, excluding Stuart Weitzman, of $1.15 to $1.25 for fiscal 2025 guidance[33] Profitability Metrics - Adjusted earnings for the thirty-nine weeks ended November 1, 2025, were $32,204 thousand, or $0.95 per diluted share, reflecting a decrease from $103,508 thousand, or $2.95 per diluted share, in the prior year[19] - The adjusted gross profit, excluding Stuart Weitzman, was $880,989 for the thirty-nine weeks ended November 1, 2025, compared to $946,934 in 2024[26] - The gross margin for the thirty-nine weeks ended November 1, 2025, was 43.4%, down from 45.5% in 2024, representing a decrease of 2.1 percentage points[25] - Total charges/other items for the thirty-nine weeks ended November 1, 2025, were $21,757, significantly higher than $1,593 in 2024[26]

Financial Performance - Caleres, Inc. has re-initiated its earnings and adjusted earnings guidance for the full-year 2025, projecting figures well below analysts' estimates [1] - For fiscal 2025, the company expects a loss per share in the range of $0.13 to $0.18 and adjusted earnings between $0.55 to $0.60 per share, which includes a dilution of $0.60 to $0.65 from the acquisition of Stuart Weitzman [3] Analyst Expectations - Analysts had anticipated earnings of $1.73 per share for the year, with net sales growth of 0.73% to $2.74 billion [3] - For the fourth quarter, the company expects a loss per share on both reported and adjusted bases, while analysts expect earnings of $0.27 per share for the quarter [2] Market Conditions - The company indicated that it expects continued tariff pressure on gross margin and earnings dilution due to the recent acquisition [1]

Core Insights - Caleres reported third quarter 2025 financial results that exceeded internal expectations, driven by organic sales growth in the Brand Portfolio segment and strong performance from Lead Brands [2][10] - The acquisition of Stuart Weitzman has significantly impacted the company's sales and operating earnings, contributing nearly half of the sales in the Brand Portfolio [2][10] - The company anticipates continued pressure on earnings due to tariffs and acquisition-related dilution, but expects to unlock cost savings and improve financial performance in fiscal 2026 [2][4] Financial Performance - For Q3 2025, Caleres reported net sales of $790.1 million, a 6.6% increase compared to Q3 2024, with the Brand Portfolio segment sales rising by 18.8% [10][11] - GAAP earnings per diluted share were $0.07, down from $1.19 in the previous year, while adjusted earnings per diluted share were $0.38, compared to $1.23 last year [3][10] - The company expects a GAAP loss per diluted share in the range of $0.13 to $0.18 for the full year, with adjusted earnings per diluted share projected between $0.55 and $0.60 [4][5] Segment Performance - The Brand Portfolio segment's organic sales increased by 4.6%, while Famous Footwear sales declined by 2.2% with comparable sales down 1.2% [10][11] - Direct-to-consumer sales accounted for approximately 71% of total net sales, indicating a strong eCommerce momentum across both segments [10][11] - Gross profit for Q3 2025 was $329.9 million, with a gross margin of 41.8%, down 230 basis points from the previous year [11][21] Strategic Outlook - The company is focused on transitioning the Stuart Weitzman business to its systems and addressing aged inventory as part of its long-term growth strategy [2][4] - Caleres aims to enhance its operating structure to leverage scale and strengthen brand development and consumer experiences [2][4] - The integration process is expected to yield synergistic cost savings starting in fiscal 2026, contributing to improved financial performance [2][4]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - Caleres, Inc. (CAL) is perceived as undervalued but is facing challenges in maintaining its market position due to the planned acquisition of Stuart Weitzman, which introduces significant risks related to increased debt levels [1]. Group 1: Company Overview - Caleres, Inc. is currently viewed as a cheap investment opportunity, but it is losing its solid footing in the market [1]. - The acquisition of Stuart Weitzman is a key factor contributing to the increased risks associated with Caleres, particularly concerning rising debt [1]. Group 2: Investment Analysis - The investment group "Value In Corporate Events" focuses on identifying actionable ideas from major corporate events such as earnings reports, mergers, and acquisitions [1]. - The group provides coverage of approximately 10 major events each month, aiming to uncover the best investment opportunities [1].